Supplements

 

archived issue

chief financial officer presents statement for 2006-2007

(Editor’s note: In the following pages are figures and pie charts showing the numbers that correspond to CFO Bill Knapp’s narrative. Please see those pages for details.)
The financial results presented here are summaries taken from the Annual Financial Report that is available on the Diocesan web site at www.diobelle.org. The annual financial report includes an independent accountant’s report that includes an unqualified opinion on the fairness of the presentation of the financial statements. The complete financial statements of the Catholic Community Foundation and the Clergymen’s Aid Society are also presented on our website.

CURRENT FUND
The Current Fund accounts for the administrative activities and several ministries funded by monies entrusted to the diocese. Administrative offices include the offices of the Bishop, Vicar General, Chancellors, Finance, Human Resources, Child Protection, and Development. The ministries include the diocesan Catholic Services and Ministry Appeal which assists in funding the three Catholic high schools, Daystar community program in Cairo, Hispanic, Rural and Prison ministries, Sister Thea Bowman School in East St. Louis, Newman Center in Carbondale, Respect Life, and Ministry to the Sick and Aged. It funds the education of seminarians, Office of Vocations, the continuing education of clergy and the formation of deacons. Ministries for worship, liturgy, lay formation and clustering initiatives are also administered from the Current Fund.

STATEMENT OF
FINANCIAL POSITION
Significant variances
The increase in cash equivalents and portfolio investments of about $1,655,000 is primarily attributable to a 14% return from our investments in the Catholic Community Foundation.
Total net assets increased $823,626. Total net assets represent the amount by which total assets exceed total liabilities, commonly known as “net worth.”

STATEMENT OF ACTIVITIES
Significant variances
The combination of parish assessments and contributions to the Catholic Services and Ministry Appeal were about flat for 2006 ($3,493,000) compared to 2007 ($3,497,000). This is a tribute to our generous benefactors in challenging financial times.
Investment income increased ($517,961) because our return from the diocesan Catholic Community Foundation was in excess of 14% for the year in its Balanced portfolio. We also had more to invest from the proceeds from the sale of real estate. See the Gain on sale of real estate item of almost $1,200,000 from the year ended June 30, 2006. The real estate that was sold was farm land that was deemed not appropriate for future parish sites. It seems we caught the crest of the “real estate bubble” in our property sales.
Total expenditures decreased by about $207,000 for 2007 compared to 2006. This “accomplishment” appears to be good stewardship but one must ask “at what diminution of our ministries?” This is a question that is carefully considered each year as we prepare and evaluate our budget.

CLERGYMEN’S AID SOCIETY
The Clergymen’s Aid Society is a defined benefit plan for priests incardinated in the Catholic diocese of Belleville. The monthly benefit to the retired priests as of July 1, 2007 is $1,150 per month or $13,800 per year.

STATEMENT OF ACTIVITIES
It is noteworthy that since fiscal year 2002 almost $750,000 in bequests has been received by the Society. Most of these bequests are from Society members. Also of interest is the increase in investment income from $85,464 in 2002 to $736,475 in 2007, an eight fold increase. The prudence of the Board’s investments in the Catholic Community Foundation is a major component of this increase. The favorable returns of the fund resulted in a decrease (noted on the exhibit) in the parish assessment needed to fund the retirement benefit. The possibility of another decrease in the assessment will be evaluated at the conclusion the June 30, 2008 fiscal year.

STATEMENT OF
FINANCIAL POSITION
The cumulative effect of the increase in net assets is presented as Net Assets-Unrestricted. The net assets of the Fund have increased by more than $3,000,000 since 2002. The adequacy of the net assets to fund the actuarial liability of the fund is evaluated periodically.

CATHOLIC COMMUNITY FOUNDATION
The Catholic Community Foundation has been in existence since May 2000. The foundation is available to accept deposits from the diocese, its parishes, schools, and agencies. The purpose of the Foundation is to provide professional investment management for funds not required for operating capital. The Foundation board represents many professional fields and all regions of the diocese. Deposits are invested in equities (the stock market) and fixed income securities (bonds) in proportions requested by the depositor. The investments are made in response to a strict investment policy that responds to appropriate risk taking and assurances that all investments are made in accordance with Catholic Church teaching.

STATEMENT OF
FINANCIAL POSITION
Deposits held for others increased $1,250,968 for the fiscal year. As of June 30, 2007 the Foundation had 87 deposit accounts, 15 more than the previous year.
The Foundation had a remarkable year in terms of market performance, the Growth (equities) fund returned 20.4% for the year ended June 30, 2007, the Fixed Income fund returned 5.0%, and the Balance Fund (60% Growth, 40% Fixed income) returned 14.1%. As we know from recent market developments past returns are not a guarantee of future gains.

SEXUAL MISCONDUCT EXPENSE
The total sexual misconduct expenses paid by the diocese for the 15 years ended June 30, 2007 is $4,341,721. Expenses for the year ended June 30, 2007 were $124,180 compared to $154,674 for the prior year. All sexual misconduct expenses are paid from the General Fund of the Diocese. None of the funding for sexual misconduct expenses is paid from contributions to the Catholic Services and Ministry Appeal, special collections, or any other diocesan funds.

SPECIAL COLLECTIONS
The proceeds from the listed special collections are remitted to the diocese by the parishes and deposited in a separate fund entitled Custodial Fund. Operating expenses of the diocese are not charged against this fund. The Custodial Fund is reserved for grants and special collections for which the diocese acts as an agent for the diocese’s parishes and agencies. Periodically — usually at the end of each calendar quarter — the balance due the appropriate charity is sent to settle the amount due.